Netflix Program Suppliers Play Hardball

Netflix recently announced it would start investing in original programming. Now producers who license their content to Netflix are retaliating against a partner that they increasingly see as a competitor.

Both Showtime and Starz have announced that they will withhold shows from Netflix.

CBS-owned Showtime is pulling "all episodes of TV series that are currently running on the channel when the current distribution deal expires this summer." That doesn't mean Showtime is pulling everything—older series will remain on Netflix. The two companies recently signed a two-year agreement, worth hundreds of millions, for library material such as Star Trek and The Twilight Zone.

Meanwhile, Starz will delay new shows and movies going to Netflix. Avid streamers will have to wait 90 days before these become available. Again, older material isn't affected.